The Trump administration is preparing to cancel a large swath of federal funding to California, an effort which could begin as soon as Friday, according to multiple sources.

Trump’s team is asking federal employees to develop rationales for funding cuts to the state, including citing noncompliance with the president’s executive orders.

Gov. Gavin Newsom on Friday suggested California consider withholding tens of billions in annual federal tax dollars amid reports Donald Trump is preparing funding cuts targeting the state. Newsom’s suggestion came after CNN reported the president was considering a “full termination” of federal grant funding for California’s universities.